Post-Brexit Deal Supports Gibraltar’s Gambling Industry and Economy
Gibraltar has secured a political agreement with the EU that protects its post-Brexit economy. The deal guarantees open borders for goods and workers, offering stability to the gambling industry, which relies heavily on cross-border employment and investor confidence.
Open Borders Keep Gambling Operations Running
The agreement ensures that people and goods can move freely between Gibraltar and Spain. This point is critical, as nearly two-thirds of the gambling sector’s workforce lives across the border. Without this fluidity, many companies would face serious operational challenges.
Nigel Feetham, Gibraltar’s Minister for Trade, Justice and Industry, highlighted the territory’s strong fiscal position. He noted that this year’s budget includes record-breaking tax revenues. According to him, failing to secure the deal would have placed those gains, along with jobs and public confidence, at serious risk.
VAT Exemption Remains in Place for Licensees
The deal confirms that services provided in Gibraltar will remain VAT-free. This decision plays a major role in attracting and retaining gambling operators. Officials maintained a firm position on this point during negotiations to protect Gibraltar’s competitive appeal.
Feetham also commented on regulatory changes in the UK. He warned that over-regulating or over-taxing the industry could push players to unlicensed platforms. He stressed the importance of fair rules that support consumer protection without damaging the legal market.
Gibraltar Pushes Back Against Tax Risk Claims
Gibraltar has taken a firm stance on tax transparency. Local authorities now review transfer pricing arrangements to ensure companies pay tax where profits are generated. Feetham rejected claims that Gibraltar-based operators create tax risks for the UK, calling them unfounded.
The government is preparing to publish a new Gambling Bill soon. Progress had stalled due to treaty negotiations, but the new agreement removes that obstacle. In the meantime, the Gambling Division has created an AI working group with several operators, showing a clear move toward innovation in regulatory oversight.